STAGES OF PRODUCTION

Stage I

All products curves are increasing. Ends where AP1 has reached its maximum point

Stage I

MP1 begins to decrease due to law of diminishing returns

Stage II

Begins where AP1 begins to decrease. Q1 is still increasing but begins to taper off

Stage II

MP1 continues to decrease till. End where MP1 is zero

Stage III

All product curves are decreasing. Begins where MP1 is zero and turns negative

Stage III

Q1 begins to decrease even though input is increased